On Wednesday November 12, 2011, the House passed a bill to help unemployed veterans seeking jobs as well as federal contractors facing a new tax burden in 2013. Veterans feel more financial hardships than most U.S citizens because they find it difficult to find jobs after returning home from active duty. This is because most jobs are already occupied and the economy is suffering. Veterans risk their lives to fight for their country, but their own country does not help provide jobs in return. However, the new bill will do just that. The bill is fully paid for and would even reduce federal insufficiencies by $2 billion over the next decade, stimulating the suffering economy. The bill gives employers tax credits of up to $5,600 for hiring veterans who have been unemployed longer than six months and a tax credit of up to $9,600 for hiring long-unemployed disabled veterans. The October unemployment rate for veterans who left the military after 2001 was 12.1%, leaving about 240,000 veterans out of work. The bill will help reduce the unemployment rate and help create a positive reflection on the state of the business cycle. As for the tax credits for businesses, will cause business to invest more and help boost the economy. The tax credit may also cause the prices for goods to decrease because businesses will have more disposable money.
The bill will also provide education and jobs retraining program for unemployed veterans and it will create a project to help veterans to use their training to get licenses in different fields in the civilian work force. Improving education will provide businesses with more productive workers, in this case veterans. Businesses are more likely to hire well trained veterans to help use capital more effectively. By providing the veterans with a better education will most likely keep them in the United States to improve the economy instead of foreign countries.
The government will also redefine who is eligible for federal help under new health care reforms, making it more difficult for some to qualify for Medicaid or subsidized health care coverage. This will cause a higher demand for health insurance, helping insurance companies, causing people to spend more of their own money in the economy while providing the government with more money to help in other critical areas and programs to help boost the economy. The bill raises the threshold level to qualify for government help by including nontaxable Social Security benefits, as well as the taxable portion, as income. This will help increase the money supply in the economy. The White House has said it supports the bill because it would "reduce unemployment and ensure that our veterans leave the military with the tools they need to succeed in the civilian workforce."
http://money.cnn.com/2011/11/16/news/economy/unemployed_veterans/index.htm?iid=SF_E_Lead
